Are TCS, Cognizant, Walmart, and Other Companies Pausing H-1B Visa Sponsorships?

Several major U.S. companies have paused or reduced H-1B visa sponsorships following the Trump administration’s recent policy requiring employers to pay a $100,000 fee for new H-1B applications. This change has directly influenced hiring strategies, particularly in technology and specialised roles.

Who Is Pausing H-1B Visa Sponsorship?

Several IT companies and retail giants have adjusted their hiring policies due to the new fee:

• Tata Consultancy Services (TCS) has decided to stop hiring through the H-1B program, citing that it already has a sufficient U.S.-based workforce and will now prioritise local talent.
• Cognizant now requires applicants for certain positions to be legally authorised to work in the U.S. without employer sponsorship.
• Walmart, employing around 2,400 H-1B holders, has paused hiring candidates requiring H-1B sponsorship.
• Intuitive Surgical, a California-based med-tech firm, has temporarily suspended sponsorships for over 100 job listings due to uncertainty over the policy.

These changes show a clear trend of companies reevaluating their dependence on H-1B visa holders in response to the additional costs.

Why Are TCS, Cognisant, Walmart, and Others Pausing H-1B Visa Sponsorships?

The new US$100,000 fee applies only to first-time H-1B applicants outside the U.S. and does not affect current holders, renewals, or those switching from other visa types, such as F-1 student visas.

This simply means that larger companies with global operations can adjust by relying on existing employees or hiring locally. However, smaller companies and startups may face challenges as the new rule could lead to a slowdown in H-1B Visa applications. 

The policy has faced legal challenges, including a lawsuit by the U.S. Chamber of Commerce, arguing that the fee is too high and could hurt U.S. competitiveness in tech and innovation.

How Will The US$100,000 H-1B Visa Fee Impact Job Seekers?

For prospective H-1B applicants, the policy means fewer sponsorship opportunities at some companies. Those applying from outside the U.S. will need to pay the $100,000 fee via pay.gov before submitting their visa application. Meanwhile, companies are increasingly prioritizing candidates who already have work authorisation in the U.S.

Read More: USCIS Clarifies Rules for US$100,000 H-1B Visa Fee and Exemptions.

Conclusion

In short, TCS, Cognizant, Walmart, and several other companies are pausing or scaling back H-1B sponsorships in response to the new fee. While larger firms may adapt quickly, smaller companies and prospective foreign employees could face greater challenges in obtaining U.S. work visas. The policy is already reshaping hiring strategies and may continue to influence the technology and specialised workforce in the U.S. 

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.